Damco ties up Sun America reefer deal
Damco, the freight forwarding arm of the A.P. Moller – Maersk Group said Thursday it has tied up a deal with Sun America Imports Inc., a U.S.-based import wholesaler of fresh produce and perishables from Latin America to North America,
Damco will handle end-to-end management of the company's entire supply chain from Latin America to North America, building on an already existing contract. That includes ocean transportation, provision for cargo insurance, landside services, and supply chain visibility. The new deal represents an estimated yearly volume of more than 20,000 TEUs, Damco said, with opportunities for expansion into new markets for Sun America, including Europe.
'Our goal is to increase profitability by reducing intermediary dependency and bring down our overall logistics and transportation costs,' said Drew Kislin, managing director of Sun America Imports. 'Our goal is also to use Damco's strong presence and network across all of the key perishable markets to jointly grow the business and our businesses to include more product groups and eventually begin exporting fresh produce to new markets in Europe.'
Ole Schack Petersen, global head of reefer logistics at Damco, said the deal emphasizes “the overall industry change of direct sourcing” of reefer products.
'Efficiency, lower overall logistics costs, shorter time to market and thus a longer produce shelf life are some of the key benefits we expect to create for Sun America Imports,' Petersen said.
Financial terms and length of contract were not disclosed.